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Vince Cable calls for details of FSA’s stress testing

Liberal Democrat Shadow Chancellor Vince Cable has written to the FSA demanding that it release details of how it is stress testing banks’ capital.

In the letter to FSA chairman Lord Adair Turner, Cable says the lack of transparency is undermining confidence in the sector.

He says: “With the US authorities publishing detailed information today I would ask that the FSA publishes as much of the detail of the stress tests as possible.

“In my opinion this should include the methodology which it employs and the results of its tests against the benchmarks employed and detailed information on the scenario inputs.”

Cable says testing standards are inconsistent, with mutual building societies subject to much greater discipline than the banks.

He is also calling for the FSA to set out the protocol it follows when releasing stress test results to the market.

He says: “I was very surprised to see on March 27 that the results of Barclays’ stress test were released not by the FSA but by the bank itself to favoured journalists. I have seen no comment by the FSA indicating any disapproval or sanctions for what appears to be highly irregular behaviour. Could you clarify the position?”


Stop the secretisation

I was impressed by the comments from Michael White of Email Mortgages regarding the destruction of advised choice by lenders.

Tracker funds decline in popularity

After a surge of investment in the fourth quarter of 2008, net sales of tracker funds fell in the first quarter of 2009, according to quarterly statistics from the Investment Management Association.Retail sales of tracker funds in the first quarter saw an outflow of £31.7m, compared with an inflow of £279.4m in the fourth quarter […]


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